TLDR:
Key Points:
- SoundHound aims to make AI drive-throughs the new standard in the restaurant industry.
- Reports show a growing interest in AI-driven restaurant operations with potential for market expansion.
- SoundHound’s voice-driven AI technology boasts high order accuracy rates and recent acquisition of Allset to enhance its food ordering system.
Article:
SoundHound, known for its expertise in voice-driven AI technology, is looking to revolutionize the restaurant industry by introducing AI-driven drive-throughs as the new standard. While McDonald’s previous attempt at implementing AI drive-throughs did not succeed, SoundHound is determined to change the game.
Recent reports suggest a growing market trend towards AI-driven restaurant operations, with 16% of restaurant operators planning investments in this area within the year. While currently, AI drive-throughs are mainly limited to large-scale chain operations like McDonald’s, as technology becomes more accessible, the market is expected to expand.
SoundHound’s AI technology boasts an impressive 90% accuracy rate in order-taking, surpassing the typical human rate of 80%-85%. This high accuracy level is crucial in ensuring accurate order fulfillment and customer satisfaction, especially after the mishaps seen in McDonald’s pilot program.
SoundHound recently acquired Allset, a move aimed at further enhancing its food ordering system. By utilizing Allset’s expertise in this area, SoundHound hopes to address potential gaps and improve its service quality. The acquisition also grants SoundHound access to Allset’s partners, opening up new market opportunities for its technology.
Despite the potential of AI drive-throughs, SoundHound’s stock performance has been stagnant, with a Strong Buy consensus rating from analysts. The stock currently shows a 5.97% loss in its share price over the past year, but with an average price target of $7.50 per share, indicating a 90.36% upside potential.
In conclusion, SoundHound’s focus on AI drive-throughs could pave the way for a new era of efficient and accurate restaurant operations. By leveraging advanced AI technology and recent acquisitions, the company is poised to lead the innovation in this sector and potentially provide investors with significant growth opportunities.